I know when you make an offer you typically specify how you plan on funding the deal.

Last I heard, they were planning to expand - as far as I can tell they cannot handle their current workload.The tenant can complain about a problem for months before it is fixed.

If they are not willing to fund, I would crunch the numbers very carefully on your end before pursuing other options.

I also agree with No. 2, and I've seen some of my STR clients welcomed by their neighbors after taking over a ramshackle place that wasn't cared for.

The 2-3% points in extra cost are worth it if you plan on using as I described above because the use would be for a few  months at most and due to that short term use you can survive a rate adjustment up.But, if you have no plan to payoff the debt like when using for a down payment on a long term hold why pay the extra cost for flexibility and have the additional risk of the adjustable rate with the amortization looming when you can get a fixed rate second mortgage. 

Our portfolio currently cash flows, but cash flow isn’t our top priority right now since we plan to use this portfolio to supplement our retirement in 12 years when I leave the Army.My biggest challenge is committing to an out-of-state market.

Also, some of you will need a little pushback against Naysayers who will encourage you to stick with your Qualified Plan.] 

It's usually best to talk with your neighbors about your plans and get their support as one of the variance tests is that the requested relief does not cause a public health issue or alter the essential character of the neighborhood.Try googling "tests for a variance in [your state]" and talk with your local zoning department.

However, since you put the asset into an LLC, I am going assume you care about asset protection and further this discussion just a bit.My advice to you is to seek out local banks where much of their business is derived from commercial lending.

@Danielle B be VERY careful with S8 "gurus".